Question

1. a savings account earns 5% simple interest per year. the principal is $1200. what is the balance after 4 years?

the balance after 4 years is $____

Explanation:

Step1: Recall simple interest formula

Simple Interest: $I = P \times r \times t$

Step2: Define given values

$P = 1200$, $r = 0.05$, $t = 4$

Step3: Calculate total interest

$I = 1200 \times 0.05 \times 4 = 240$

Step4: Compute final balance

$\text{Balance} = P + I = 1200 + 240 = 1440$

Answer:

1440